Today a legend in the business, Pierre Lassonde, told King World News this is the calm before we head into the eye of the storm. Lassonde also said additional global turmoil and crisis will propel the gold market into a mania which will be comparable to silver’s historic run to $50 in 1980.
Lassonde is past President of Newmont Mining, past Chairman of the World Gold Council and current Chairman of Franco Nevada. Lassonde is one of the wealthiest, most respected individuals in the resource world, so KWN takes his warning about the coming financial storm, and prediction for gold very seriously.
Eric King: “We’ve seen the Indians step in and raise import duties by 50% on gold in an effort to curb demand, Pierre. What did you make of that?
Lassonde: “Well, in the past it has never deterred the Indians from buying gold because they smuggle it. The (Indian) government is very well aware of that. They can increase the taxes by a small amount and the official channel will still work.
But if they increase it too much, what you are going to see is the gold is going to go through Dubai and it will be smuggled back in (to India). So you are going to see Dubai, all of the sudden, will be importing 400 tons of gold for like 3 people. Where does it go? It’s all going to India. So I’m not too concerned about it at this point.
Two countries in the world buy more than 50% of all the gold every year, and that’s China and India….